How do you achieve your ROI goals in today's property investment market? Hear our projections for the housing market for the rest of 2021, and Glenn speaks with Amy, a Memphis-based investor, who describes her experiences of managing tenants for her own real estate investments.

2021 Housing Market Projections & Achieving ROI in Today's Real Estate Market

Richard: So in this segment, we're going to talk about 2021 and where we are now nearing the end of the second quarter. How do you think things are going to go for the rest of the year guys? And how do you see mortgage rates changing and the demand for property?

Brett: Personally, I think that what we are now seeing is a cooling. Not a major cooling, but a little bit of a dip. In the first quarter, we would write 40 offers and get 3 accepted. Now, we are writing 20 offers and getting 8 accepted, so we are starting to see a better advantage for our investors. I still believe the best time to buy is going to be October, November, December, and January.

Aaron: It's been such an odd year for us. I've seen in my own neighborhood recently, in Germantown, an increase in the number of days on market. In my neighborhood in particular, which we would consider a move-up neighborhood, a move-up neighborhood would be your next step up from an entry-level house. Where we live would be like a very nice house. I'd say that we live in a very modest home in Germantown, in one of the more affluent communities in the Shelby County and Memphis area. There are more houses on the market right now. There are for sale signs that don't have those little sliders across the top that say contract pending or sold, or under contract, and those houses have been out there for several weeks.

Brett: The reason being is because almost everybody tried to get their property purchased and get it closed. They get settled in and have two or three weeks for the kids before they are back to school. So the good news for homeowners that are looking for a home, is that there's a lot of inventory now. Not a lot, but there's more inventory than there has been in 6-months for real estate investors. As the owner-occupant market cools, the investor market will cool. I don't know why investors do this, but many property investors, not good investors, but some of these investors follow the leader too much. In other words, they follow them right off of a cliff. 

Richard: So, like lemmings?

Brett: Right. Exactly. So, why wouldn't you wait until the property market takes a little dip and wait to buy in October, November, December, and buy a better deal. I'm hoping these so-called experts that just put out their discussion about how property values are gonna continue to increase, and they predict the next five years is gonna be a substantial increase. I tend to think they're wrong. After all, what drives the market up? It is demand. The demand is eventually going to stop. I believe that the hedge fund groups are the ones that drove the demand for property. Once that took off, then homeowners panicked, they started buying, and they ended up overshooting prices, and real estate prices snowballed. But now all that's coming to an end. So I predict we're going to see some normalcy back in the housing market. I think the so-called experts, who probably have never held a real job, are wrong in my opinion. 

Glenn: Well, and keep in mind that when they talk about the market in general, they're not really talking about real estate investors, as that’s a totally different game. I would never dissuade one of my investors from buying, but I told several of them to wait, until Q4. Wait until the winter or once thanksgiving hits. That's our time to start looking through the end of the year because then you're gonna have more opportunity because fewer owner-occupants are going to be buying.

Brett: When the market is hot as soon as wintertime gets here, what do investors do? They just go silent and cool off. It's the holidays they are go